We see weakness in Procter & Gamble stock following restructuring in certain markets as an overreaction

Published Tue, Dec 5 20232:58 PM EST

Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here's today's edition. The market Tuesday extended its rotation from Monday but this time with cash moving into Big Tech while investors sold off lower quality companies and year-to-date laggards. This is all happening as the 10-year Treasury yield falls below 4.2%, further supporting the Magnificent 7 mega cap tech stocks. American Express (AXP) took a tumble this afternoon after it said at a conference that October billings were softer than the third quarter as "everybody got a little bit skittish" but rebounded in November back toward third quarter levels. It's always interesting to see how patterns in consumer spending can mirror stock market performance. October was a terrible month for stocks while November was much better. Elsewhere, we're still seeing weakness in Procter & Gamble (PG) after it announced a restructuring in certain markets, including Argentina and Nigeria. We think this is an overreaction. The company spoke at a Morgan Stanley consumer conference Tuesday explaining that profits and cash flows in these markets were getting crushed by currency. The company decided to move to an import only market in Nigeria and is planning to divest its Fabric and Home Care business in Argentina. At the conference, management also cautioned that China will probably get worse before it gets better, but the stock isn't reflecting a China recovery down here. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.